During the first month of the year, Wall Street confident in the possibility that the Fed’s rate reduction process will begin in March. This expectation – which at first seemed too optimistic – added to the strong rise in Cash with Settlement (CCL) during the month, caused the cedars they would have increases of up to 60% and would once again allow them to be a refuge from inflation.
The ranking of the most outstanding cedars were for Nvidia (+58.5%) and Advanced Micro Devices INC (+46.4%). This was also driven by the advancement of Cash with Settlement (CCL) by 28.6%, reaching an intraday historical maximum of $1,310 on January 22. The financial analyst Federico Izaguirre consulted by Ambitexplained that the cedars “act as protection against variations in the exchange rate.”
On the contrary, the cedars that fell in the month were NIOthe Chinese automobile company with a drop of more than 18%, Coinbase Global INC linked to the world of cryptocurrencies (-3.4%) and Tesla Inc.Elon Musk’s company with a decrease of 2.1%.
Forward, Izaguirre highlights that we are in key days for the balance of the most important companies listed on Wall Street: “I see that the trend continues in companies that are investing heavily in artificial intelligence (AI) and technology in general. The FED kept the rate unchanged reference interest rate and the market discounts the start of a casualty cycle in the next meetings in March. “I continue to see upside in Nvidia, Microsoft, Amazon and Meta for example.”
For its part, Maximiliano Donzelli, Head of Research at IOL investingonline weighed the cedar of Netflix which rose 49.1%. “In this case, it is a company that continues to give good signs after going through a period of questions and uncertainty during 2022. The main trigger for this increase had to do with the presentation of its balance sheet, which surprised positively. to Wall Street analysts and caused a jump in its price.
And he added alcedear of Spotify (SPOT) that registered an increase of 46%. “As for the Swedish streaming platform, it is a company in the growth sector, which can benefit in periods of lower rates by the US central bank.”
Others that had notable increases were Vista Energy (+42.1%) and Mercado Libre (+40%).
Fury over Nvidia and AMD
Nvidia and AMD were the cedars most notable even reaching historical highs during the month, because investors continue to have strong interest in the shares of companies that manufacture artificial intelligence (AI) chips. GPUs, originally designed for computer games, are also essential for training and deploying intricate AI models, such as OpenAI’s GPT, which has led to a massive increase in sales of these chips.
Nvidia has been the leading supplier of GPUs to AI companies for the past two years and was the best-performing stock in the S&P 500 last year.
AMD, the second largest independent GPU manufacturer, announced a new chip that could compete with Nvidia’s chip that is currently the standard for AI applications.
Meta, Vista Energy and Mercado Libre
On the other hand, Goal It managed to exceed a trillion dollars in market capitalization thanks to the fact that it implemented cost reduction measures added to the fact that investors saw in the company the ability to generate greater development in AI, being one of the largest buyers of GPUs.
As to Vista Energy, the american bank Citi The target price per share was corrected upwards and there are good prospects due to its solidity in the energy sector, added to the fact that the devaluation of the currency benefits oil companies that have income linked to the dollar and costs in pesos.
The same financial entity projected in Free market that the shares would once again operate at values close to the historical highs they reached in January 2021. “MELI’s results continue to exceed our expectations. Not only is its core business growing above our forecasts, but the pace of margin expansion has been notable.“, wrote the bank in a document dated January 2024. From Citi’s research area they recalled that Galperín’s company exceeded its expectations in 2023, so by 2024, “we continue waiting for market share gains in the main geographies such as Brazil, Mexico and Argentina.
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